The Zee Network has appointed merchant banker UBS Warburg on Monday before scouting for a strategic partner for the broadcaster. UBS Warburg would advise Zee on how to divest its stake to the partner. Zee had recently announced that it was in search of a strategic partner for the growth of the company’s business in a competitive environment.
Zee was scheduled to appoint a banker within 10 days of its announcement in the Month of May, the process took longer than it was expected. Zee has not officially announced as to how much stake it wants to part with while getting a partner.
According to the company, it was a strategic decision it took with a long-term perspective in mind. This measure would create a sustainable advantage for the company, it felt.
At present, promoters hold 60 per cent stake in the company while foreign institutional investors (FIIs) have 19 per cent. Another 7 per cent are with Indian financial institutions, and around 4 per cent with Star. The remaining stake is with individuals and corporate bodies.